Half Year 2024 Essentra PLC Earnings Call Transcript
Key Points
- Essentra PLC (FLRAF) achieved revenue and profit growth on a constant currency basis, with momentum building from Q1 to Q2.
- The company's European performance remains solid, with diversity in the region being a strength despite challenging external markets.
- The acquisition of BMP is on track and performing slightly better than expected, contributing to commercial opportunities.
- Essentra PLC (FLRAF) is making good progress on sustainability, leading to meaningful commercial wins.
- The company has maintained a progressive dividend policy, with a 4% increase in line with profit growth.
- The China domestic market remains soft and challenging, impacting growth in the APAC region.
- Cash conversion is down to 80% due to working capital investments, affecting short-term liquidity.
- Net debt to EBITDA has increased to 1.1 times, reflecting the distribution of cash reserves and acquisitions.
- The electronics and cable management sector is experiencing a decline, impacting overall product performance.
- Essentra PLC (FLRAF) faces ongoing challenges in the German economy, affecting regional performance in Europe.
So morning all. Thank you all for joining. So I'm Scott Fawcett, Chief Exec of Essentra, and delighted to be here with Jack Clarke, our CFO, to share with you the results for the first half. We'll go through the usual agenda. I'll give you a quick summary to start with, over to Jack for the financial performance, I'll come and talk a little bit about strategic updates and then we'll cover the outlook. We'll also, in a strategic update, cover the regional performance as well, give you a little bit more color on each of the three regions within the business.
So in summary, the word we're using to describe performance in the first half is encouraging. Again, it's a difficult market context. It remains challenging out there, but encouraging overall for the Group. So we managed to get overall revenue growth and profit growth on a constant currency basis. We -- Jack will talk through the revenue bridge in terms of like-for-like impact of acquisitions and impact of FX, but delighted to see some momentum in the business with growth
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